The Credit Crisis and the Resulting Effects on the Financial World free essay sample

All of these events are what has led to what analysts have said to be a recession. This paper will attempt to explain the causes that credit issues had on the financial crisis as well as show how liquidity played a major role in throwing debt markets into panic and in some cases failure. I will also give some insight into how the debt markets became inactive because of these issues. We will also take a look at how interest rates affected this crisis as well as how the stock market and initial public offerings (IPOs) were affected. The Beginnings of the Bubble Burst After the internet bubble burst of 2000 the Federal Reserve Bank was worried about a serious deflationary period. Because of this fear they did not want to counteract the housing bubble. The Federal Reserve Bank actually lowered the federal funds rate from 6. 5% to 1% in the period from 2000 to 2003. We will write a custom essay sample on The Credit Crisis and the Resulting Effects on the Financial World or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This was done in order to soften the blow from the internet bubble and was encouraging people to borrow at faster rates. During this time period, banks also went through a serious transformation period where instead of holding onto debt, they used new financial innovations to bundle them and sell the risk off onto other investors. This process was named originate and distribute. In this banking model loans were put together, tranched and sold via securitization. To tranche means to slice up the pool of debt into say slices of a pie. Each pie slice has a different risk involved, credit rating and thus different amounts of interest paid. Securitization is where these slices are then sold to different investors as bonds or Collaterized Mortgage Obligations (CMOs). The principal and interest on the debt, underlying the security, is paid back to the various investors regularly. These types of new innovations led to new investors and thus access to more liquidity for banks. Banks began to thrive with all the new opportunities for them to create more liquidity. As you can see from this chart, Securitization was being exploited at alarming rates. [pic] This in turn, allowed them to be able to lend more money. The problem was not the increased amounts of loans that banks gave out, the problem lied with whom these banks were lending money. Of course the added pressures growing in the market from the government and financial institutions werent helping matters. As I mentioned earlier, The Federal Reserve Bank was lowering the federal funds rate in the years of 2000 through 2003 which encouraged people to invest in real estate. At the time the real estate market was on a tremendous upswing. However in the years of 2004 through 2006 they started increasing the federal funds rate (FFR) which made 1-5 year adjustable rate mortgages more expensive to reset for homeowners. There was another side effect of the rising FFR, generally when interest rates rise, assets fall in value. This would mean that speculation in real estate would be much riskier for investors, and this may have led to the eventual housing bubble burst. However this did not stop banks from targeting a new market. A new customer target entered the market for banking systems, Sub-prime borrowers. Originally, banks were, for the most part only lending to prime borrowers, a group of borrowers who are considered the most credit-worthy, indicated by a FICO score greater than 720. These prime borrowers were able to borrow money at the markets best interest rate and were also considered safe investments. Sub-prime borrowers on the other hand, were less than desirable potential customers to lend to. Their credit ratings were much lower than prime borrowers, meaning they were more likely to be late with payments on loans or even default all together. Now, initially banks may have strayed away from giving as many loans out to sub-prime borrowers as they did, however added pressures by the government and financial institutions were mounting. When the Securities and Exchange Commission relaxed the net capital rule in 2004, this allowed the five biggest investment banks to dramatically increase the leverage they could use and also allowed them to aggressively expand on their issuance of mortgage backed securities (an asset-backed security or debt obligation that represents a claim on the cash flows from mortgage loans through securitization). This then pressured government entities such as Fannie Mae and Freddie Mac to expand their riskier lending to sub-prime borrowers, and this led as an example for other banks that followed suit. Financial Market Begins to Feel the Pain and the Onslaught of Liquidity Issues Arise The rise of securitized products ultimately led to a flood of cheap credit, and lending standards fell. Now that banks had a way to get rid of the majority of risk involved in lending money, via securitized products being sold to financial institutions, they took an easy going approach to approving and monitoring loans. Banks came up with new ways to give out mortgage loans with no down-payments, jobs and even income! These were called piggyback mortgages (the combination of two loans to take the need of a down payment away) and NINJA (no income, no job or assets). These loans were given on the assumption that people if people needed money they could always refinance and actually horribly wrong and in fact the opposite happened. Loans started to default a domino effect began causing liquidity crisis as well as other issues. The trigger for the liquidity crisis began in early 2007, when sub-prime mortgage defaults started increasing at damageable speeds. Mortgage-backed Securities, CDOs and asset-backed securities (a security whose value and income payments are derived from and collateralized (or backed) by a specified pool of underlying assets) all took a huge hit. This dominoed into the shadow banking system (financial institutions that do not have the same regulations as banks because they do not take deposits like banks do) causing many institutions great problems. The major issue was that a lot of these shadow banks had borrowed from investors in short-term, liquid markets (such as money markets and commercial paper markets) and then took this money and lent it out to corporations or invested in long term investments, less liquid assets. In most cases these long term assets that were purchased were mortgage-backed securities. So as you can see the default on sub-prime mortgages was deeply intertwined with all that shadow banking systems were involved in. Once the mortgages defaulted and investors became weary of investing in mortgage backed securities, these financial institutions that had so heavily depended on short term monetary loans from the investors were finding themselves quickly bankrupt. Because the shadow banks are not regulated such as depository banks they are also not able to use the lender of last resort, the U. S. Central Bank. In short financial institutions were in a serious bind. They needed to sell their long term loans for cents on the dollar to be able to pay off the short term loan payments and in the end many institutions were out of business. Some notable companies in 2008 that closed down shop were Bear Stearns and Lehman Brothers. And the long and short of it is that these financial institutions were also highly leveraged. That coupled with the long term illiquid investments they held were the shadow bankers downfall. The effects of defaulted mortgages did not stop there. The effects of defaulted mortgages continued to snowball into a huge problem for such companies as AIG. AIG is an international insurance company that had heavily invested in credit default swaps. The major problem that started the downfall of AIG was the downgrade of its credit rating. When you have a credit rating of AAA you do not, by industry standards, have to give collateral when entering into credit swaps. When AIG had to start providing collateral with their trading counter parties the problem of liquidity started. This was not just a small problem either; they had backed 100 cents on the dollar to CDSs. They had engaged in over 440 billion dollars worth of CDSs of which almost 60 billion were structured by sub-prime loans. In their first half of 2008 they reported 13. 2 billion in losses. They were on the verge of what could have sent our whole financial system into chaos. Had AIG failed it would have sent a wave of bankruptcy through the financial world that would have collapsed the entire market. Because after all, they were insuring financial institutions, who were holding risk for banks who had defaulted mortgage loans. The bailout by the U. S. Government saved AIG by giving them the biggest bailout in history, 85 billion dollars (of which the US Government got an 80 percent equity stake). That was not even the end of it; AIG was given another 77 billion after that. The buck basically stopped with AIG, as they were too big to fail. They had offered a product that while markets were doing well AIG was successful, but as the market declined they entered into what analysts say was inevitable. They offered to cover all risk when offering 100 cents on the dollar, and once the defaults on prime mortgages made it through the entire financial world they had to back the product they offered in CDSs and obviously they could not. The Financial Market Freezes The collapse of the shadow banking system was an igniter of the market freezing. They had accounted for one third of all U. S. lending mechanisms leading into this crisis. The reasoning was because investors that had been supporting the financial institutions with short term money loans quickly bailed out once things started to go wrong. With this absence of monetary injection into the shadow banking systems they were no longer able to fund mortgage funds, corporations and others in need of their services. This caused banks to have a serious absence of liquidity as well, leading them to start hoarding money. This meant that instead of banks loaning to counter-parties in need they held onto the funds in fear of needing liquidity in the future. This was a serious problem and one that will not be fixed in years to come. A lot of the forms of securitization that were once available are likely gone forever. The reasoning behind them disappearing is that they were designed in a time of very loose credit conditions and that time has gone, at least for now. While banks have raised their lending standards it was the rise and fall of shadow banks that inevitably led to the inactivity of debt markets. The Stock Market Follows As I mentioned earlier, the defaults on sub-prime mortgages spiraled into many liquidity problems in the financial markets. They caused investors to start fearing that markets would continue to drop. Banking institutions bankrupted, and with AIG on the brink of disaster, matters only got worse. Investors caused bank runs (Groups of people all withdrawing money from banking institutions at the same time), Illiquidity, and massive panic in stock markets. As we can see from this table, The SP 500 index was significantly hit by these defaults. As you can see, during the crisis period volatility was 43. 6% (325% of pre-crisis period). [pic] This table reflects how the average investor was feeling about the market. As you can see in the post-crisis analysis the market volatility is still at 20. 9% and the average is actually lower than the crisis period. This next chart reflects the Dow Jones Industrial Average (DOW). As you can see here, the chart mirrors the information given in the last table. March 2009 was the low point of the market (where the crisis ended), and the market has rebounded. It has not yet returned to its previous high of 14,000 but it has steadily been on the incline since March 2009. This gives us hope in looking to the future, that even in the trenches our economy can rebound. Effects on Initial Public Offerings Initial public offerings are the first sale of stock by a company to the public. This allows companies big and small to raise capital for their firms. With the severe economic downturn in 2008, it sent a wave of negative effects worldwide, which hit the IPO markets hard. IPO markets plummeted by over 60% in both deal numbers and funds raised. Up until 2008, there had been record-setting years with IPOs. The problem lied with the illiquid markets. There was a significantly less money that investors were willing to supply for IPOs. Although IPOs were taking a significant hit, U. S. and China still led the way as far as funds raised from IPOs Companies with strong business plans and innovative products for the economy were still able to realize positive gains in the public markets. Looking towards the future, IPOs will rebound. Analysts say that signs point to new horizons for IPOs, favoring companies that offer innovative and public solutions for the changing environment. Looking Towards the Future In short, our financial world hit a wall when sub-prime mortgages were abused. Securitization multiplied the effects from default mortgages causing financial ripples that destroyed many firms. Other problems such as the relaxing of regulations and the pressures from the U. S government to give out sub-prime mortgages only made things worse. Greed ran wild and should have taught us a lesson on what deregulation and the abuse of sub-prime borrowers can do to markets. We also need to keep banks more regulated and have the government always keeping a watchful eye on the shadow banking system. Congress and the Obama Administration have taken the first step forward to preventing a repeat by putting into law the Dodd-Frank Wall Street Reform and Consumer Protection Act. As regulators begin the rule-making process it is estimated that the act mandates nearly 250 regulations and 70 studies. Just as quickly as it was passed, however, the industry was hard at work lobbying to diminish the protections under the act by intervening as much as possible in the rule-making process that follows any such legislation. Additionally, the industry lobbyist are hard at work in an effort to get the newly elected Republican-controlled House of Representatives to weaken the legislation’s impact through low funding of the various regulatory enforcement provisions. I would hope that in the future we can learn from this crisis and realize that lending to borrowers with good credit, and income that can afford the payments of a loan, are very important aspects in lending. Equally, financial institutions must get back to seriously following their own loan policies, since most policiesthat were ignored allowed for loans to be approved that should not have been. . Works Cited 1. United States. Federal Reserve Bank of St. Louis. The Financial Crisis Timeline. Web 09 Dec. 2010.

Essay Scholarships - College Grants For Students With Excellent Essay Scores

Essay Scholarships - College Grants For Students With Excellent Essay ScoresHave you ever wondered why most colleges and universities don't offer essay scholarships to their students? There are many reasons why the school doesn't offer such scholarships. You have probably heard the school policy that students must take the SAT, ACT, or SAT Subject Test to get accepted to college.It is unfortunate but many colleges and universities won't to take a student who has taken such tests as a student without this kind of test or at least not for college admission. This is good because students with perfect scores on these tests can still be accepted in many schools.If you are interested in getting essay scholarships then there are many ways to do it. Most scholarships will take students that have a good writing and grammar score. For this reason most scholarship offered by the college grants scholarships for students who have scores of 140 or above. The exact college grants will vary but ther e are lots of scholarships that are designed for students with scores of 160 or higher.When it comes to the scholarship application, write something that you want to write. You should put your life experiences and events in the essay. There are colleges and universities that will accept students who apply with essays that are well written but if you are aiming to get scholarship money from your college then you should go for a different approach.You have to study what kind of essay will get you the most amount of scholarship money. You can read up on these things at a library or a college bookstore. You can even start asking the teachers and professors at your school.Most scholarship for essay scholarships will not pay you to do anything other than write the essay. If you don't want to do that then you might want to reconsider. The thing is that essay writing is very time consuming and if you are applying for a college scholarship then you should go for this process.These essay scho larships are good for all students as long as they follow the rules. You have to write the essay because you need to show that you are capable of writing. Most people think that essay writing is not important and if they fail to write one then they fail to get the scholarship money but that is not true.

Feminism and Witches essays

Feminism and Witches essays In a history class last year, I was made aware of a movement from some radical feminist groups that claimed the slaughter of innocent women in the 16th and 17th century witch trials as a parallel to the misogynistic persecution they perceive as an integral part of culture today. The use of the inquisition of witches as an analogy for the contemporary subjugation of women is ahistorical due to the evolution of the social dynamics that occurred between the 16th and 20th centuries. The political climate of the 16th and 17th centuries was one of great conflict, with many opposing forces struggling for control. As a patriarchal society, women were not allowed into the forefront of politics, therefore having no direct voice in judicial and societal matters. This made women prime candidates for persecution under a law system completely under the control of males. In early modern Europe, religion had a much more powerful influence upon the lives of the masses than it holds today. Those in the position to receive an education were commonly limited in their endeavors to theological seminary. Those of the traditionally uneducated classes first and foremost women were saturated by the theological interpretations of the religiously educated few. The moral economy of early modern Europe was forged by the hands of those educated by the church and enforced through a fearful reverence of the wrath of God. Ordinary citizens, lacking basic literacy, were compelled to accept the clergys version of Gospel as The Gospel. Today, with the advent of public education and higher literacy rates than ever before seen, the general public has the opportunity to examine liturgy and form individual theological structures. In addition to a more educated populous, the religious community has been forced by the modern idea of separation between church and state to vacate its position as ultimate moral arbiter. Another facet o...

Why do you want to teach Special Education Essay

Why do you want to teach Special Education - Essay Example I am aware that a special education teacher is required to be organized, patient, has the ability to motivate his students, understand his students and the teacher should also be able to accept the differences in others, something I experienced on a first hand basis. It is to my understanding that special education is a little different from the normal education system in that; their curriculum is modified to meet the students’ needs. The special education program is available at all levels from preschool, elementary, middle, and secondary level (â€Å"U.S Bureau of Labour Statistics† 206).  The teaching modes include the use of individualized instructions that can only apply to a specific child, for example, some students might need extra time during exams or others might need the teacher to teach at a slow pace for them to understand.  Furthermore, I also understand that there must be a strong teacher-parent relationship because that is the only way a parent will trust the school to take care of his or her child. In addition, there are reports of a rise in job prospects, in this area, due to a rise in enrolment of students with disabilities, and I believe I can get this opportunity (â€Å"U.S Bureau of Labour Statistics†

Textual analysis Essay Example | Topics and Well Written Essays - 1000 words - 3

Textual analysis - Essay Example Although I agree with Talbot that the new generation needs a boost to accomplish more, I do not believe that neuroehancers is what our generation needs to get ahead in the white collar competition. Although there are many people out there who are using these drugs to try and get ahead of the competition, not all people are really making any progress in that direction. In fact, the people who are using these drugs are mostly already ahead of the competition that we wonder if these drugs actually even helped these people achieve their goals. Throughout the report of Talbot, we can clearly see that the people who used neuroenhancing drugs did not feel smarter or more creative. First, let us take a look at Alex the guy who recently graduated from Harvard. Alex is a classic example of a student who wants to achieve almost everything at once. He led a very hectic schedule so he needed an energy booster to keep him awake, alert and focused. Since Alex was admitted to Harvard and he ran a student organization, presumably, this guy is already smart and is ahead in terms of academic achievements. During his interview with Talbot, Alex clearly stated that the drug Adderall helped him focus his mind on the tasks at hand but it did not make him feel smarter. According to Alex, â€Å"The drug, along with a steady stream of caffeine, helped him to concentrate during classes and meetings, but he noticed some odd effects; at a morning tutorial he†¦ alternated between speaking too quickly and thoroughly on some subjects and feeling awkwardly quiet during other points of the discussion.† Lunch was a blur: â€Å"It’s always hard to eat much when on Adderall.† Based on the statement of Alex, we can clearly see that the effects of nueroehancers are not always good. The sudden bursts of mental activities followed by silence are not a good sign. If our generation wants stay competitive, we need more than just drugs that boost out mental

Impact of British Colonialisation on Indian Culture Essay Example for Free

Impact of British Colonialisation on Indian Culture Essay Colonialism is the establishment, maintenance, acquisition and expansion of colonies in one territory by people from another territory. It is a process whereby the metropole claims sovereignty over the colony, and the social structure, government, and economics of the colony are changed by colonizers from the metropole. Colonialism is a set of unequal relationships between the metropole and the colony and between the colonists and the indigenous population. The colonial period normally refers to the late 15th to the 20th century, when European states established colonies on other continents. During this time, the justifications for colonialism included various factors such as Christian missionary work, the profits to be made, the expansion of the power of the metropole and various religious and political beliefs. WHY COLONISE INDIA? Britain discovered the Indian sub-continent when it was looking to expand its vast empire. The East India Company was formed and came to recognize that India was a hub of trade and home to many natural resources. This situation made India an attractive colony to Britain as it seemed unquestionable that Britain would benefit from the situation. Britain did benefit from the situation; however, notwithstanding the obvious injustices associated with colonization, India also experienced positive impacts that continued even once India gained independence from Britain in 1947. It is important to note that although India gained independence all ties with the British nation were not cut. Britishers earmarked that no person in India was beggar. The country is of high wealth, high moral values, and people of caliber and thought to break the backbone of the nation i.e. cultural and spiritual heritage and therefore they proposed to replace old and ancient education system, for if the Indians thin k that all that is foreign and English is good and greater than their own, they will lose their self esteem, their native culture and they will become what britishers want them, a truly dominated nation. IMPACT OF COLONIALISATION The impacts of colonization are immense and pervasive. Various effects, both immediate and protracted, include the spread of virulent diseases, the establishment of unequal social relations, exploitation, enslavement, medical advances, the creation of new institutions, and technological progress. Colonial practices also spur the spread of languages, literature and cultural institutions. The native cultures of the colonized peoples can also have a powerful influence on the imperial country. Impact of British rule in India had been widespread throughout the country and affected the cultural, technological, religious, social, political and economic state of India. India had persistently tolerated the British rule for 200 prolonged years, with their everlasting impression been forever etched upon the succeeding Indian citizens. Impact of British rule in India, in this context, is one that had perhaps emerged forth right from the 16th century, when British missionaries had sailed to easte rn soil to spread Christianity, much before the British East India Company. The negative impact of British rule in India was mostly visible in the economic aspect which occurred as a result of de-industrialization and destruction of rural economy. Initial Impact of British Rule in India British invasion on India was not the first of its kind; India has prior to British arrival, been host to pellets of ruthless foreign invasions. The British, in this regard, were the last to arrive in India. However, when it came to the power game, it undoubtedly was the British and the British East India Company, who completely captured Indian power and people. They covertly and efficiently expanded their empire with the competent aid of Indian soldiers. Indians had joined the East India Company army solely for the reason that they received salary on the first day of every month, very much unlike the Indian emperors and their system of reign. As such, impact of British rule in India already had begun to do its work, with the very first Christian missionaries arriving to India, with the intention to turn a majority of population into Christians. They tried to cast Christianity in the light of a better religion and with economic inducements convinced the poor Indians into Christianity . POSITIVE IMPACT 1. Modernization and industrialization During British occupation, India was modernized and industrialized. British industrialists invested huge amounts of capital in the region. The British East India Company built the worlds third-largest railroad network, which connected regions and enabled the country to develop a modern economy. Western culture also improved Indian culture with the development of a road network, telephone and telegraph lines, many dams and bridges and irrigation canals. During British occupation, these developed systems of transportation and communication benefited the British, rather than Indians. But they were put in place for Indian culture to take advantage of when the country finally achieved its independence. 2. Education Indian culture benefited from Western culture in the area of education. During British occupation, many schools and colleges were built throughout India. Literacy increased and, for the first time, the poorest classes of society had access to knowledge. 3. Employment The presence of Western traders in India increased the demand for goods and services in India. As a result of the British living in India, Indian artisans, weavers and craftsmen were steadily employed. Although they were deprived of the full profits of their labors, these artisans and craftsman grew in numbers, and the Indian labor force became more skilled and handy. By the time the British left the subcontinent, a greater percentage of Indians had acquired skills to make a living. 4. Establishment of churches gave importance to port cities The very foremost impact of British rule on India was the religious impact, as was established by the missionaries and their establishment of churches in every possible corner of the country. In this regard, the port cities like Kolkata, Mumbai, Chennai gained enough importance, due to their accessibility for navigational purposes. They were later turned into the 3 cardinal presidency towns. The keen attempt of British Christians to turn several bunches of Indians into a complete unfamiliar religion was successful, though only in parts. Some had gladly accepted it, in fear of inviting the rage of the company, while others had turned hostile, in turn giving rise to collisions and difference of opinion. 5. Socio-Cultural Impact of British Rule in India The socio-cultural impact of British rule upon India was also another intense impression that had lasted throughout their rule, never for once losing their significant status. From every field of living, be it in education, art, architecture, painting, literature, poetry, drama, novels or even Indian religion and philosophy, the whole Indian set-up had suffered a gradual change. The conventional and simple society, prevalent in India, respected and dreaded the British rulers. British aristocrats travelled throughout India in separate Europeans Only First-Class Railway Carriages. They had for themselves separate waiting rooms in most of the major railway stations. They also came to set up elite schools for their children. In most of the theatre halls, the balcony was earmarked for the whites and the local maharaja. Their significant passionate pastime, during late 19th and early 20th centuries, appeared to be hunting animals and birds in Indian jungles. As such, the population of tige rs, lions and elephants slumped down because of indiscriminate hunting. 6. Creating Unity One of the first impacts that colonisation had in India was the development of unity. When Britain first acquired India as a colony the country was divided. The British imposed system impacted India by bringing more equality to the country as the caste system which outlined social hierarchy was adapted. It is also significant that Britain accepted all of the religions of India which also allowed unity to prosper. 7. Leading Towards Democracy India has also experienced positive impacts from the institution established and then left behind by the colonizers. The institutions established by the British Raj and then inherited by India helped lead to democracy in modern day India. The assistance of these institutions assisted India in becoming the world’s largest democracy today. It is also of note that Britain first introduced India to early capitalism through colonization. Britain transformed India into an agricultural based capitalist economy and established forms of private ownership. These actions led India into creating free trade and competitive business. 8. Sports Another positive impact of colonisation can be seen in sport in India. During the colonial period Britain brought the sport of cricket to India. Cricket today brings enthusiasm to millions of Indians and is celebrated around the country. India as a nation has also emerged as a prominent team in cricket tournaments as India has successfully beaten many other countries. Cricket also serves to connect much of the Indian population as the sport is celebrated nationally. 9. Setting up of railways The British had introduced the system of Railways in a chain method, with the whole of the country staying witness to placing of railways tracks, railway platforms and railway carriages. Indeed India railways, postal services, legal and judicial systems and other government-based services have all been derived primarily from the British administration. British rule virtually had helped unify India, which till then was quite fragmentary. The in-built inferiority complex was the characteristic trademark of the mass of the native population, till Mahatma Gandhi. 10. Introduction of English language Introduction of English language which was infact intended to create a class of people appreciative of English culture and life style indirectly helped Indians to acquire a link language. Although introduction of helped in developing an efficient bureaucracy for the british government, it gave Indians an opportunity to know western concept of rights and freedom and the extent of discrimination practiced against them by British. Exchange of ideas among Indians speaking variety of languages became possible. 11. Other positive effects * Stamping out of infanticide * Stamping out of ritual burning of widows (Sati) * Abolishment of slavery * Elimination of dacoits from highways * Legalization of remarriage of widows * Introduction of penal code for equality NEGATIVE IMPACT 1. Development of constitution Development of our constitutional framework is to a great extent based on the legacies of the British colonial rule. Our constitution was formed in protest to britishers because at that time India was under the slavery of British raj otherwise the picture of our constitution would have been different. 2. Slaves and indentured servants The labour shortage that resulted inspired European colonizers to develop a new source of labour, using a system of indentured servitude. Indentured servants consented to a contract with the European colonizers. Under their contract, the servant would work for an employer for a term of at least a year, while the employer agreed to pay for the servants voyage to the colony, possibly pay for the return to the country of origin, and pay the employee a wage as well. The employee was indentured to the employer because they owed a debt back to the employer for their travel expense to the colony, which they were expected to pay through their wages. In practice, indentured servants were exploited through terrible working conditions and burdensome debts created by the employers, with whom the servants had no means of negotiating the debt once they arrived in the colony. 3. Impact on health Encounters between explorers and populations in the rest of the world often introduced new diseases, which sometimes caused local epidemics of extraordinary virulence. For example, smallpox, measles, malaria, yellow fever, and others were unknown in pre-Columbian America. 4. Economic Impact of British Rule in India Impact of British rule in India however was not restricted only to these spheres; the economic impact was yet another domain which practically had drained out the native populace, creating a forever draught in 1947. The chief aim of these settlers was to make India an agrarian country that would supply an industrialised England. As such, the Indian farmers suffered with their land revenue, most of which were ruthlessly being seized by the hyperbolic Zamindar class. Each passing year further tightened the economy, making Indians go insane to the nerve; Indian local-manufactured products were sold in tremendously cheap rates in Britain, making the native money-making policy even harder. The world-over societal degradation also had spilled in India, like the World War I or the Great Depression of the 1930s. The situation had become so very dreadful that there could not be found any out of such an entangled mess. 5. Constructive Impact of British Rule in India Amidst all these alarming states and conditions, the imperial rule were compassionate enough to introduce European education in India. This ground-breaking impact of British rule in India truly has benefited India in the long run, carving out a prestigious position of India in the world map. Knowledge of English was essential to earn a job in the British bureaucracy, in the British trading firms and of course in the British Army in the officer level. Many dignified concepts like parliamentary democracy, the European scientific ideas, industrialization and liberal human philosophy permeated into the Indian brain. 6. Resource Drain One of the primary goals of colonialism was the establishment of a resource-generating system through which natural resources from colonized regions were gathered and traded by the colonizing nation. This process reduced the availability of natural resources in the colonized nations, leading to times of hunger, poverty and need. Some colonies were heavily farmed, with food stores shipped to feed populations elsewhere while locals survived on less. Further, this created a system where a colonized country could be farmed for its natural wealth, but receive no monetary benefits. 7. Dismissal of Hinduism Religion provided the needed rationale for this cruel plunder. All native Hindus were dismissed as heathens or pagans despicable creatures who dont have to be treated like human beings till they take their fateful decision to embrace Christianity. According to the missionaries who came to India to play second fiddle to the British Imperial rulers, Christianity was the only true religion. Jesus Christ was the only true God. All other religions like Hinduism, Jainism, Buddhism, Sikhism, and many other traditional faiths and religions in India had to be eliminated to save the souls of India and Indians. All facets and all aspects of Hindu religion and Hindu society were dismissed as idolatry and superstition, in order to advance the noble Christian pursuit of salvation for the barbarous heathens of India. Along with Christian religion came the rest of British or Western culture, thought and customs and the gradual end of traditional ways of life. Thus our traditional religions and cult ures were gradually subverted or eliminated. CONCLUSION Today India is the largest provider of services in the world in large part due to colonisation; however, it is uncertain if without colonisation this would be possible. The Indian population is able to compete in the service sector due to the positive impact of the English language being left behind post British rule. When colonisation was occurring in India schools were established which taught and offered instruction in English. It is also of note that the East India Company had a positive impact by establishing some services such as rail throughout the country. The British rule introduced the railways, the press, and the western system of education, clubs and associations all of which shook the prevalent socio-economic order. But the processes of exploitation unleashed by them destroyed the possibilities of development of industries and a modern economic system in India. The British rule rather systematically destroyed the native industries of India for the benefit of the industries in Britain and their market in India. Even though it sought to tie down the people it ruled to colonial backwardness, it released new historical forces within the Indian fold by throwing the traditional economic system and socio-cultural order out of gear. It gave birth to the desire of material advancement and better amenities and living conditions of individuals. Also it gave birth to a spirit of inquiry in the minds of Indian intellectuals who came in contact with western education. Both the social reformists and the conservatives took a fresh and critical look at their own society and culture as a reaction to western interpretation of the same. REFERENCES: * Positive Negative Effects of Colonialism | eHow.com http://www.ehow.com/info_8505011_positive-negative-effects-colonialism.html#ixzz1pZTzR700 * nos.org/317courseE/L-35%20COLONIALISM%20IN%20INDIA.pdfSimilar * www.kwintessential.co.uk//india/Impact-of-Colonisation-in-India/Cached * en.wikipedia.org/wiki/History_of_colonialism * Government of India, Report of the Education Commission 1964-66, Delhi, 1966. * D. Warriner, Land Reform in Principle and Practice, Oxford University Press, 1969 * Maddison, â€Å"The Historical Origins of Indian Poverty†

Interview with an Elderly Woman Essay -- Interview An Elderly Person

In the early 1940’s Marie was born into a small tight knit family living in a small rural Kentucky town. Marie is now in her seventies and has led a very interesting life traveling the country, raising four children, and shaping her chosen profession. Our interview sessions were conducted over a period of time, as Marie is very active and has little â€Å"free time† to spare. Early Life Her parents meet at a social gathering in town and where married shortly thereafter. Marie’s name was chosen by her grandmother and mother, â€Å"because they loved to read the list was quite long with much debate over each name.† If she was a boy her name would have been Francis, so she is very happy to have born a girl. Marie’s great uncle was a physician and delivered her in the local hospital. Her mother, was a housewife, as was the norm in those days and her father ran his own business. Her mother was very close with her parents, two brothers, and two sisters. When her grandmother was diagnosed with asthma the family had to move. In those days a warm and dry climate was recommended, Arizona was the chosen state. Because her grandma could never quite leave home, KY, the family made many trips between the states. These trips back and forth dominated Marie’s childhood with her uncles and aunts being her childhood playmates. Marie’s grandparent’s had an old farm house, which was one of many homes in which she lived, that she remembers most. The house was huge, she learned to walk, climb stairs, and find hiding places in it. The house had a wide wrap around porch with several wide sets of stairs both in front and in back. She remembers sitting on the steps and playing with one of the cats, with which there was a lot of cats living on the farm... ...anizing the boxes of memorabilia into albums for her children, if time permits. The only thing she’ll commit to is that everyone in her family will have a croquet blanket made by her just for them. When looking back over her life, so far, she says not a bad life. Then again she’s not done yet and hopes to have another good ten years. I leave you with her life’s message. â€Å"Follow your heart. Life is not a straight line there are lots of curves, circles, and detours. Each and every experience will give you something valuable. Keep close to those you love and who love you. Family is so important. Always do your best, be honest with yourself and others, have integrity, be dependable, like who you are, change what you don't like, keep learning, keep trying, you are better than you think.† (Rodrà ­guez) Bibliography Rodrà ­guez, Marie. Personal Interview.